Baltic Index Drops

The Baltic Exchange's main sea freight index dropped
nearly 2 percent on Wednesday, weighed down by lower rates for
capesize vessels ahead of a week-long Lunar Year break in China
starting Thursday.

The overall index, which factors in rates for capesize,
panamax, supramax and handysize shipping vessels, was down 19
points, or 1.71 percent, at 1,095 points.

Despite the Lunar New Year and the fact that the effects of
the traditional slowdown are already visible, the Baltic index
signals a positive period from March if the pattern of previous
years repeats itself, shipbroker Intermodal said in a note.

The capesize index fell 72 points, or 4.02 percent, to 1,721
points.

Average daily earnings for capesizes, which typically
transport 150,000-tonne cargoes such as iron ore and coal, were
down $762 at $13,313.

The panamax index was up for the first time in 13 sessions
and climbed 3 points, or 0.24 percent, to 1,231 points.

Average daily earnings for panamaxes, which usually carry
coal or grain cargoes of about 60,000 to 70,000 tonnes, increased
$29 to $9,885.